What Happens if China's Growth Rate Falls Below 5%?

The People's Daily stated that China is not dependent on reaching specific GDP growth rates and that a growth rate below 5% is acceptable, as there is no need to "worship speed." The Communist Party's newspaper emphasized that the focus for the Chinese economy should be on qualitative improvements and reasonable quantitative growth.

The editorial noted, "If we do not break free from 'worshipping speed' and continue to rely on blind growth and haphazard project launches, even if we temporarily increase growth, the price we pay will be the depletion of future growth potential." It also suggested that being slightly below or above 5% is acceptable after rigorous efforts.

Additionally, the editorial warned of economic risks arising from increasing global economic instability and geopolitical uncertainties. It made a pointed reference to Trump's customs tariff threats and the United States' ongoing efforts to curb China's technology and broader goods exports, stating, "Some countries may intensify their encirclement and suppression efforts against us."

Pointing to a challenging period ahead, the People's Daily remarked that domestic consumption growth is "still weak and stabilizing investments is becoming increasingly difficult," adding that the economic recovery is not yet robust. Last month, Reuters reported that government advisors recommended Beijing maintain an economic growth target of around 5.0% for next year.